Amazon Puts the Squeeze on iTunes

There’s no denying that Apple’s iTunes has been a huge success online. By offering seamless integration with the Apple iPod and iPhone, the downloadable iTunes software is easy to use and allows music lovers to download single songs or complete albums with just a few clicks.

But one big complaint that many iTunes’ users have is that Apple does not use standard MP3’s, opting instead to present songs in their own proprietary format that is incompatible with Windows Media Player, Winamp, and other popular media software.

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Additionally, iTunes uses DRM, or digital rights management, to protect songs and albums from being burned to a CD, or used in non-Apple devices. These limitations have been the Achilles’ heel of iTunes for some time, and now Amazon.com is preparing to exploit this weakness with the introduction of Amazon’s MP3 music download service, available on the Amazon.com web site.

Like iTunes, the Amazon MP3 download service allows users to purchase either single songs in a mix-and-match format, or complete albums at one go. But the similarities between the two end there.

Unlike iTunes, the Amazon music downloads do not use digital rights management of any kind, and the song files are presented in standard MP3 format, which can be easily burned to CD or played with any popular media software or hardware MP3 players. Amazon MP3’s are also formatted as 256 kbps MP3 files, providing a higher-quality listening experience for the consumer.

The removal of the digital rights management code offers Amazon.com a huge advantage over iTunes, and fulfills a need that online music consumers have been demanding for many years now; namely, the ability to use their downloaded music files in any way they see fit, and play them on any number of different devices, computers or burned to a CD.

Critics are already hailing the new Amazon MP3 downloads service as a giant leap forward in the digital music industry. To make matters even worse for iTunes, Amazon.com also offers a familiar elegant layout, with a short streaming MP3 preview available of every single song in their inventory. This feature, combined with Amazon’s elegant one-click purchase button, could allow Amazon.com to dominate the online digital music industry the same way it has with books and other media.

A quick perusal of the Amazon MP3 downloads section also reveals a significant price difference. At the moment, most single songs are only $.89 on Amazon.com, with full albums priced between $8.99 and $9.99. This is significantly cheaper than the average purchase price on iTunes, and demonstrates Amazon.com’s skill at dominating online markets.

With more flexibility, streaming previews of every song, no digital rights management, higher quality standard MP3 files, and an elegant one-click purchase interface, Amazon.com could turn out to be the iTunes killer consumers have been waiting for.

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6 Comments »

Very good article. I actually learned something!

Comment by micky — December 4, 2007 @ 3:52 am

[...] Ironically enough, Apple’s biggest competition in the downloadable music arena is quickly becoming Amazon.com, whose downloadable music service uses no digital rights management technology at all, preferring to provide high-resolution standard MP3’s that can be played or exchanged without restriction. [...]

Pingback by Apple Teaming Up With Fox for Movie Rentals — December 29, 2007 @ 9:08 pm

[...] The newly established Amazon MP3 Store is changing the way many people browse and purchase music online. Unlike their biggest rival, iTunes, Amazon distributes music in higher quality 300 KBS MP3 format, which includes NO Digital Rights Management protocols. This allows the end-user to transfer music files from one computer to another, to an iPod or other MP3 player, or even burn tracks to an audio CD or CD ROM as often as they like. [...]

Pingback by Amazon MP3 Store Partners with Sony — January 23, 2008 @ 6:52 pm

[...] But increasingly, online music sites are feeling pressure from consumers to drop the DMR, and provide music in a standard MP3 format, which can be copied, burn to CD, or otherwise used as the purchaser sees fit. Amazon.com’s new MP3 store is spearheading the new unprotected MP3 movement. Amazon is providing millions of popular music albums and single tracks, all in standard MP3 format, without DRM or any other type of “protection.” [...]

Pingback by Yahoo Considers Offering “Unprotected” MP3s — February 5, 2008 @ 8:59 pm

[...] This is a stark contrast from Apple’s iTunes, which offers only a very limited selection of music without digital rights management. It appears that the new MySpace music portal will follow in the footsteps of the Amazon.com music store, which uses no digital rights protection, and makes music tracks unavailable in a variety of formats, including standard and high quality unprotected MP3 files. [...]

Pingback by MySpace Prepares to Launch Online Music Portal — April 7, 2008 @ 9:11 am

[...] Amazon.com’s MP3 store also continues to gain ground against the competition online. Launched just a year ago, the Amazon store offers music tracks and a slightly lower price than iTunes, and uses no digital right management technology, so that music downloaded from the side can be copied onto CD, or used in any type of MP3 player. [...]

Pingback by iTunes Replaces Wal-Mart as Number One Music Retailer in the US — April 9, 2008 @ 8:58 pm

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